African-Americans currently own roughly 2.5 million businesses, and according to Fast Company, Memphis is the best place for Black entrepreneurs.
Black entrepreneurship is on the rise, but according to the website, African-American founders receive less funding than their White peers. they also have limited access to capital.
In fact, less than 1% of black founders receive funding, leaving many Black owned business left to operate by just one person. This limits their ability to not only hire other employees, but to grow and build their business venture.
Black entrepreneurs may be struggling in Silicon Valley, but a recent report by Blacktech Week revealed that they are striving in the Southeast.
According to the findings, the top four cities for Black-owned businesses are Memphis, Montgomery, and Atlanta.
Researchers cite an increase in the Black population and low cost of living along with supporting their own as reasons why Black entrepreneurs thrive in these cities.
Official Black Wallstreet founder, Mandy Bowman isn’t surprised that these three cities are serving as a hub for Black entrepreneurs.
“The reason why these cities stand out so much is that the cost of living is much lower,” she said. “The South also has a long history of entrepreneurship, especially through the Jim Crow era. People in these cities had no choice but to start their own businesses, and because of that history, I think it’s something that’s been ingrained in those cities. On top of that, these cities have a large African-American population, which is why there are many entrepreneurs in the Southeast.”
And there we have it.